5 common misconceptions about student loans

Unfortunately, there is a lot of misinformation online about student loans. This misinformation can make students confused and concerned about their finances. Below we debunk 5 common myths and misconceptions about student loans to provide as much clarity as possible for students.

1. My university cannot help me

Many students overlook the financial aid departments in their university and believe once they have graduated they are no longer entitled to any help from their University. This is simply untrue and even after graduation, a financial aid office can help a student navigate their loan repayment process. 

2. Filing for bankruptcy will automatically eliminate my student loans

Filing for bankruptcy will not automatically discharge your student loan. It can, however, have a long-term impact on your financial status and make it difficult for you to apply for a credit card or loan in the future. 

3. There is a fee to change my repayment plan

If you have taken out a federal loan, there is no charge for changing your repayment plan and you can do so as often as you wish. Following a standard repayment plan is often recommended, however, as this will keep the interest on your loan repayments low. 

4. My loan provider cannot help me if I cannot make my monthly repayments

If you are unable or struggling to make your monthly student loan repayments, you should contact your loan provider who will help to make adjustments to your payment plan to stop your loan going into default. Never be afraid to contact your loan provider, as they may be willing to be more flexible than you think.

5. I will never pay back my student loan

It takes the average student 10 years to pay back their student loan. While 10 years can feel like a lifetime, paying off a student loan is definitely a reasonable and achievable goal. 

If you are feeling hopeless or would like extra help organizing your student loan repayment plan, do not hesitate to contact StudentLoanify today. We help students to take control of their student loans and help them to understand their finances in more detail.